
Address by 

Elbert H. Gary 

President, American Iron and Steel Institute 

At Annual Meeting 
New York 



May 25, 1917 



BS? 



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Address by the President, Elbert H. Gary, at Annual 
MEi-rriNG OF American Iron and Steel Institute:, 
New York, May 25, 1917. 

United Statics Did Noi' Seek War 

The people of the United States constitute a peace 
lovin<; nation. Tiiey abhor war and would ^o, have gone, 
great, lengths to avoid it. They are considerate, reason- 
able and forbearing. Thej are not envious of their na- 
tional neighbors. They neither seek nor desire anytliing 
that belongs to any other country. If they had an advan- 
tage over other nations, in any department of human 
endeavor, they would not unjustly i)rotit by it. Their 
and)ition is to cultivate good will and friendship and 
their hope is to avoid enmities. Their consistent pur- 
pose and elTort have been to occupy an inde[)endent posi- 
tion amongst nations, unentangled and uncomplicated 
with alliances or associations that nught interrupt the 
])olicy of aiding and never antagonizing others. 

These obseiTations are based on history. The i-ecord 
ha«^ been written and cannot be changed by any who may 
imjiugn the motives or conduct of our people. Such a 
eitizenshij), when driven to self-defense by a barbarous 
despotism is apt to hr the most lenilde. even (hough 
civilized an<l hiimaii in its ((Miiliat iveness. This country 
is largely made np of men an<l women, who came here 



to live in peace and tranquillity, or the descendants of 
snch; they wish to progress and prosper as the result 
of privileges which the exclusion of war always permits. 
The great majority, if not the total, of our inhabitants 
appreciate what our Kepublic, with its protective in- 
stitutions and manifold opportunities, means to every 
citizen; and with noble impulses they will in every 
emergency rally around and follow the stars and stripes, 
their emblem of honor, of liberty and of justice. 

We did not desire, we persistently and consistently 
sought to avoid, trouble with Germany and her allies. 
We had always been the true friends of the Teutons until 
the ruling powers, for reasons not comprehended by us, 
forced us into the position of self-defense. We believed, 
as indeed it was admitted by the invaders, that they were 
reckless, lawless and cruel in their treatment of their 
neutral and unoffending neighbors, but as a nation we 
refrained from interference or even criticism. As human 
beings we suffered intensely as we learned of the outrages 
perpetrated upon the innocent victims of force and bru- 
tality ; and still our nation, not for lack of sympathy, but 
rather on legal grounds, stood aloof. We were neither 
indifferent nor selfish, but our President, after full and 
careful consideration of all the facts and the construction 
of the rules of international law as determined by the best 
legal talent, decided he was obligated to remain silent and 
inactive. For one, I think his conclusions were war- 
ranted. 

Even after the Central Powers trespassed upon the 
well established rights of the persons and property of 



individual American citizens, our Government was 
patient and unmoved to action, accepting the excuses ami 
promises of the aggi-essors. As a nation we exercised 
more restraint than any large and powerful people ever 
before practiced under provocation so great. Our chief 
executive indulged the hoi)e for long and weaiy and suf- 
fering days that our entry into the pending war might 
be avoided. The wish was father to the thought; and 
this sentiment filled the minds of the majority of the 
people of the United States. 

At last war was forced upon us. The President was 
compelled to conclude that we were intentionally at- 
tacked, (hat the honor and integrity of our country could 
no longer be maintained unless the gage of battle was 
accepted; and in this decision he was supported by the 
whole country. His clear, powerful, convincing and elo- 
quent statement of the case and imi)eachment of the 
enemy will stand out in history as one of the greatest of- 
ficial declarations and also as fully justified l»y the exist- 
ing facts and circumstances. 

A CoLOSS.VL Undert.vkinu 

But we have entered upon a colossal undertaking, 
justified only by the necessities of the case and on the 
highest moral grounds. It is doubtful if any of us fully 
realizes the strength of the enemy, even though we know 
his grim determination. Ilis numbers, his preparedness, 
resources, devices, creative ability, methods, protective 
barriers, means of rapid mobilization and transfer of 

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troops and supplies, are further advanced in effectiveness 
than any other army or armies have ever been. This 
concentration and perfection of the utilities of military 
strength should not be underrated. Years of steady, 
active and studious, though secret, effort have brought 
about the creation of a giant, powerful, remorseless, con- 
scienceless; and up to the present this kind of a govern- 
ment, armed to this extent, seems to have an abiding con- 
viction that it can overcome all opposition and sooner or 
later pursue a war of aggression and conquest. 

Right Makes Might vs. Might Makes Right 

And yet, the Allies possess an element of strength not 
appreciated — if it could under any circumstances be 
understood — by those who are in control of the armies 
of the Central Powers. The Allies are contending that 
Right makes Might; their enemies that Might makes 
Right. We are of the opinion that we possess a weapon 
that must prove all powerful. With this as the founda- 
tion and inspiration of our armies they are better able 
to utilize all the forces at their command. It will require 
time, skill, numbers, sacrifices and large sums of money ; 
but nothing that we do not possess in abundance. For 
the reason that we are right and the enemy is wrong, we 
shall probably see other nations of strength and impor- 
tance, now neutral in attitude, join the Allies, if the war 
shall be protracted. Some or all of the South and Cen- 
tral American republics, China, Spain, Scandinavia, Hol- 
land and Switzerland ought to come in and probably will 



before the C'eiitral Towers are allowed to accomplish 
what they attemi)t. These countries could not alTord to 
permit their jieople to become subjei-t to the dominance 
of a nation which considers force as the only considera- 
tion for aiip-ession and expansion. 

With the unprecedented and increasing wealth and 
the vast resources of the I'nit.e<l States she is able to assist 
nmterially in providing the financial necessities for equip- 
ping multitudes of soldiers from other countries; and if 
necessary, all these must be mobilized in the defense of 
a common and righteous cause. And as to equipment, 
the brains of the Allies, ourselves included, will, in time 
be sufficient to match and over-nuitch the best talent that 
is possessed bv our adversaries after manv years of con- 
stant thought and study. Among other things it is con- 
ceivable that if the Allies had the best and most efifective 
types of aircraft, outnumbenng those of the other side 
five or ten to one, they could obtain and hold control of 
the air and in this way destroy the productive works, 
transports of troops and supplies, storage wareliouses and 
other facilities for offensive and defensive warfare of the 
enemy, and thus materially increase the advantage now 
held by reason of numbers and resources. We may be 
sure our experts are giving due consideration to all the 
possibilities for improved machines and methods. 

WiL\T We Ake Fk; 1 1 ting For 

What are we fighting for? This question is asked and 
answered, in one form or another, by millions of people. 

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I give an answer that seems to me to underlie all others : 
We are fighting to firmly establish and permanently 
maintain a basis whereby every international question in 
dispute must be determined in accordance with the prin- 
ciples of justice. 

To bring this about, other questions which are ob- 
vious, must be determined; but if the above mentioned 
basis is secured everything else necessary will have been 
or will be disposed of. 

All Should Be Willing to Sacrifice 

The task which confronts the country is not confined 
to the army and navy, although they will be entitled to 
the larger part of the credit and glory if we succeed. 
They offer their bodies as a sacrifice, and they must have 
the undivided, unqualified support of all outside their 
ranks. The time, money and prayers of all civilians must 
be given for the soldiers. They bear the brunt; they are 
the shield for our safety. All of us are fighting in self- 
defense. This is our land and the flag is ours. The ad- 
ministrators of the country, from President Wilson down, 
are no more interested than each of us. Life would not 
be worth living if our flag were to be permanently furled ; 
if our country were subjugated by an alien enemy, espe- 
cially such a one as we now defend ourselves against. 

The pecuniaiy burdens to be imposed upon us will be 
very great. We knew in advance such would be the case. 
We must pay the enormous cost of mobilizing, equipping, 

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supplying and moving our own armies; and we must ad- 
vance money and provide supplies to our Allies in accord- 
ance with their necessities and our resources. We could 
not decline if we were disposed, for they are now fighting 
our battles and we are, with them, under the whole 
burden. We must never falter nor retrace our steps. 
Wherever or whenever the end is we must press forward 
with all our strength, might, minds and souls. The more 
vigorously we proceed within the limits of intelligence, 
the sooner will the end be reached. 

Equitable Dlstribution of Tax Burdens 

Some of us are complaining or cnticizing l)ecause of 
the enormous taxes that are likely to be imi)osed. We are 
apt to consider ourselves as opposed by the legislative or 
executive departments of the Goverament, as if they were 
partisans, seeking to punish or at least unfairly treat the 
private individual. We do ourselves an injustice by har- 
boring such tlioughts. ^^'e can rightfully claim that the 
burden of taxation be ecpiitably distributed; that all the 
people, after exempting the necessities of life, shall be 
compelle<l to contribute; and that there shall be no waste 
or extravagance in making expenditures. If possible 
taxes ought to be so levied and distributed as to avoid 
clogging the channels of business prosperity. All this we 
may properly demand. Equitable distribution is fair 
and reasonable, and it makes all pecuniarily interested 
in the subject, including both the collection and the ex- 



penditure of the taxes levied. Less than this would tend 
to create classes — the worst thing for any country. 

Now is the time to unite the whole country in a 
common cause. The soldiers are on a level as they ought 
to be. All others should be on a level. Classes should 
be obliterated and also politics, localities and religious 
differences during war times at least. Opportunity 
should be open to all; governmental burdens should be 
borne by all. With such an administration of govern- 
mental affairs we should be satisfied, however severe the 
drafts which are made upon us or upon the larger in- 
terests which we represent. 

I lately spent a few days in Washington, and it was 
my privilege to meet a number of men who in legislative 
halls or executive departments are serving their country ; 
and it is certain that all are actuated by the motive to 
fairly represent and protect the best interests of the 
country and all the people. Individuals are not in- 
fluenced by politics. There are and will be differences of 
opinion concerning the various questions presented, as 
a matter of coui^e, but these will be adjusted and the 
legislation finally passed will represent an honest en- 
deavor to do what is proper. 

Government is Co-operating With Business 

You have heard some criticism concerning the conduct 
of the Government's business affairs. It has been said 
that confusion or at least lack of system or co-operation 



sonietinies appears; but it must be remembered that tliere 
has been suddeuly thrust upon the Government officials 
an enormous amount of business, extraordinary in volume 
and character, and the strength and capacity of all are 
taxed to the utmost and often beyond physical endur- 
ance. Besides, iiiles of law or of departments established 
to fit other conditions sometimes ai)pear and prevent the 
exercise of judgment which would bring better results 
if more latitude were permitted. Officials in Washington 
are entitled to credit and praise for their management 
under existing circumstances, and so far I believe there is 
no just ground for severe criticism. 

And then there is a disposition on the pari of Govern- 
ment officials to co-operate with the business men in pro- 
moting the welfare of the country. This is what all of 
us have desired and advocated, and now we will probably 
have as much opjtortunity in this direction as we have 
ever desired. Just what will be the result in all the rami- 
fications of the business involved remains to be seen. To 
the extent that the Directors of this Institute have been 
personally connected with these matters they have been 
well satisfied, except p('rlia])s as to some of the prices in 
question. 

Mr. B. M. Baruch, Chairman, Committee on Raw 
Materials, Minerals and ^letals of the Advisory Commis- 
sion of the Council of National Defense, writing for him- 
self and the Secretary of War, and also representing 
the Secretary of the Navy, rHjuested your President to 
act as Chairman and to appoint other mendjers of a com- 



mittee on Steel and Steel Products, to co-operate with 
the Government; whereupon the matter was brought 
before the Directors of this Institute and such a commit- 
tee was designated, consisting of the following : 



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Elbert H. Gary, Chairman 

James A. Farrell, Vice-Chairman 

James A. Burden 

E. A. S. Clarke 

Alva C. Dinkey 

H. G. Dalton 

Willis L. King 

Charles M. Schwab 

John A. Topping. 



The General Committee has appointed sub-commit- 
tees as follows : 



For Ascertaining Capacities and Supervising Allotments 
of Orders to Manufacturers: 

James A. Farrell 

E. A. S. Clarke J. A. Topping 

E. H. Gary, Ex-Officio 



On Alloys: 

James A. Farrell 
E. A. S. Clarke A. A. Fowler 

E. G. Grace E. J. Lavino 

E. H. Gary, Ex-Officio 



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0?i Pig Iron, Iron Ore and Ldkc Tnimportation: 

11. (;. Daltoii 
Frank l>illin<;s Ilarry Coiilhy 

Geor<;e T. Dyer Leonard Peck it t 

P^raiik Kichards W. T. Shepard 

A. H. Woodward Amos Mather, Sec> 

On Sheet Steel: 

W. S. Horner 
Walter Carroll Charles Iladlej 

On Scrap Iron and Steel: 

Eli Joseph 
.Samuel Deutsch Joseph Michaels 

Vernon Phillips 

On Pig Tin: 

John Hughes 
E. R. Crawford Edwin (; roves 

On Tin Plate: 

J. I. Andrews 
E. II. Crawford E. T. Weir 

On Tubular Products: 

James A. Campbell 
Anson :Mark Geo. Matheson 

W. H. Kowe E. C. Worcester 

The committees meet re.mijarly and are devotinf; mnch 
time to the work involved. 



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They have, with other work, been engaged in mobiliz- 
ing the resources of the different producers of steel, 
such as the Government requires for its purposes, and 
the statistics are in the possession of the Secretai*y of 
this Institute. 

The Secretary of the Navy submitted a program for 
1917 for plates, structural shapes and bars needed for 
ships, and after considerable negotiation, contracts were 
closed in behalf of the producers on the basis of |2.90 
for plates and |2.50 for structural shapes and bars. We 
were of the opinion that in view of present costs and 
other conditions we should receive larger prices, but in 
the spirit I have referred to the proposition of the Gov- 
ernment was accepted. As costs of production are ad- 
vancing on account of increases in wages, taxes, prices 
of certain raw materials, etc., it is expected the Govern- 
ment will be willing to increase its purchasing prices 
accordingly. 

Iron and Steel Fraternity Patriotic 

The Iron and Steel fraternity, represented by this 
Institute, will be actuated by the highest conception of 
patriotic duty with respect to the requirements of the 
Government. We will cheerfully bear our full share of 
the load which must be carried until there is realized a 
complete triumph over the hosts of aggressive, desperate 
and inhuman autocracy. Personal interests will yield to 
the necessities of the country we love. 



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